America’s Largest Bank Follows Competitors Under Market Demand Pressure

America’s largest bank, JPMorgan Chase, will allow its clients to buy bitcoin, albeit without providing custodial services, as announced by bank CEO Jamie Dimon. According to CNBC, the offer likely refers to access to spot bitcoin ETF shares rather than direct cryptocurrency purchases. This decision is particularly notable given that Dimon himself remains a well-known cryptocurrency critic, repeatedly calling bitcoin a “decentralized Ponzi scheme” and even advocating for their complete ban. This move puts JPMorgan on par with Morgan Stanley and other financial giants that are gradually integrating crypto assets into their services under client demand pressure, despite their own skepticism and regulatory constraints.

Forced Market Concession: Details of JPMorgan’s Offering

At JPMorgan Chase’s annual investor day, held on May 19, 2025, Jamie Dimon made a statement that many perceived as an unexpected turn in the bank’s strategy:

“We’re going to allow you to buy it [bitcoin]. But we’re not going to custody it. We’re going to include it in your statements.”

However, accompanying this announcement, Dimon demonstrated that his personal opinion on cryptocurrencies remains unchanged: “I don’t think you should smoke, but I defend your right to smoke. I defend your right to buy bitcoin.”

According to CNBC, citing an unnamed source, JPMorgan plans to offer not direct bitcoin purchases but trading in spot bitcoin ETF shares. This is a significant clarification, as ETFs represent a regulated financial instrument, which complies with Federal Reserve System rules that limit banks’ ability to work directly with crypto assets.

An important aspect of the offering is the refusal to provide custodial services, meaning the bank will not store clients’ crypto assets. This decision aligns with the bank’s conservative approach to risks and reflects continuing concerns about the security and regulatory aspects of digital asset storage.

Dimon did not specify which categories of clients would gain access to the new capability. If JPMorgan follows Morgan Stanley’s example, this option will likely be available initially only to wealthy clients with a certain level of assets.

From Harsh Criticism to Forced Acceptance: Evolution of JPMorgan’s Position

JPMorgan’s decision to allow clients access to bitcoin represents a surprising evolution of the bank’s position, given the historical skepticism of its leadership. Jamie Dimon, who has led JPMorgan since 2005, has been one of the loudest critics of cryptocurrencies in traditional financial circles for many years.

In 2017, Dimon called bitcoin a “fraud” and threatened to fire any bank trader who would work with it. In subsequent years, he somewhat softened his rhetoric, acknowledging growing interest in cryptocurrencies, but maintained fundamental skepticism. In December 2023, speaking before the Senate Banking Committee, Dimon even supported the idea of a complete ban on cryptocurrencies, calling bitcoin a “decentralized Ponzi scheme.”

Despite the CEO’s personal position, the bank itself has gradually shown increasing interest in blockchain technology and even cryptocurrencies. In 2019, JPMorgan launched its own digital token, JPM Coin, for instant settlements between institutional clients. In 2021, the bank began offering wealthy clients access to cryptocurrency-related products, and its analytical division started regularly publishing reports on the digital asset market.

“We’re observing a classic case of separation between a leader’s personal opinion and strategic business decisions,” comments Alexander Kuptsikevich, financial analyst at FxPro. “Dimon may maintain skepticism, but JPMorgan as a business cannot ignore the growing demand for crypto assets among its clients, especially when competitors are already offering similar services.”

Following the General Trend: Comparison with Competitors

JPMorgan Chase’s decision to provide clients with access to bitcoin through ETFs should be viewed in the context of a broader trend among traditional financial institutions. Morgan Stanley, one of JPMorgan’s main competitors, began offering its consultants the ability to recommend spot bitcoin ETF shares to certain investors back in August 2024.

In early May 2025, information emerged that Morgan Stanley might add trading in crypto assets directly to the E*Trade platform, which would be an even bolder step in cryptocurrency integration.

Other major financial institutions are also actively exploring this niche:

• Goldman Sachs reopened its cryptocurrency trading desk in 2021 and has since expanded its range of services.
• Bank of America, though more cautiously, also offers some clients access to bitcoin investments through ETFs.
• Wells Fargo, according to recent forecasts by Bitwise Chief Investment Officer Matt Hougan, may soon add spot bitcoin ETFs to its offerings.

“We’re seeing one after another of the largest U.S. banks including cryptocurrencies in their product lines, despite initial skepticism and caution,” notes Raoul Pal, CEO of Real Vision and former head of Goldman Sachs’ hedge fund division. “This resembles the gradual adoption of the internet by financial institutions in the 1990s—first denial, then cautious interest, and finally full integration.”

Regulatory Context and Limitations for Banks

An important factor influencing JPMorgan’s and other banks’ strategy regarding cryptocurrencies is the regulatory environment. Both JPMorgan Chase and Morgan Stanley are bound by U.S. Federal Reserve rules that do not allow them to offer crypto assets directly.

Section 23A of the Federal Reserve Act establishes restrictions on transactions between banks and their affiliates, while provisions of the Bank Holding Company Act limit the types of activities banks can engage in. Direct trading and storage of crypto assets remain in a gray area and potentially violate these rules.

However, offering clients access to regulated financial instruments, such as SEC-approved bitcoin ETFs, falls within the permissible activities for banks. This is why most traditional financial institutions choose this path to satisfy client demand for crypto exposure.

“Banks are in a difficult situation: on one hand, they see market demand and potential profit from cryptocurrencies; on the other, they face serious regulatory constraints and uncertainty,” explains Thomas Schaeye, a lawyer specializing in financial regulation. “ETFs have become the perfect compromise for them—a regulated ‘bridge’ between traditional finance and the world of cryptocurrencies.”

Significance for the Market and Prospects for Further Integration

JPMorgan’s decision, as America’s largest bank with assets of around $3.9 trillion, to provide clients with access to bitcoin through ETFs could have significant implications for the cryptocurrency market and their further inclusion in the traditional financial system.

First, it legitimizes cryptocurrencies as an asset class for more conservative investors. When such an authoritative financial institution, led by a known cryptocurrency critic, begins offering access to bitcoin, it may reduce perceived risks for many potential investors.

Second, this move could accelerate the inflow of institutional investments into cryptocurrencies. JPMorgan clients manage significant assets, and even a small portfolio reallocation in favor of bitcoin could lead to a substantial capital inflow to the market.

“Banks with their huge customer base and assets under management can trigger a domino effect in institutional cryptocurrency adoption,” believes Mike Novogratz, CEO of Galaxy Digital and former Goldman Sachs partner. “When JPMorgan starts offering access to bitcoin, other banks are forced to follow suit to avoid falling behind competitors and losing clients.”

In a broader perspective, the integration of cryptocurrencies into traditional bank offerings could lead to further blurring of boundaries between traditional and digital finance. Although banks are currently limited to offering ETFs, successful experience may pave the way for more direct interaction with crypto assets in the future, especially if the regulatory environment becomes more favorable.

Contradiction Between Words and Actions: Dimon’s Position

Perhaps the most intriguing aspect of this story is Jamie Dimon’s continuing skepticism about bitcoin, despite the bank’s decision to offer clients access to it. His comparison of buying bitcoin to smoking—”I don’t think you should smoke, but I defend your right to smoke. I defend your right to buy bitcoin”—clearly demonstrates that his personal opinion hasn’t changed.

This creates an interesting precedent where a leader publicly criticizes an asset that his bank decides to provide clients access to. Such a contradiction can be interpreted as recognition that market forces and client demand can prevail over leadership’s personal beliefs.

“This is a classic example of business pragmatism,” comments Jeremy Allaire, CEO of Circle. “Dimon may personally not believe in bitcoin’s value, but as CEO he recognizes that a significant portion of JPMorgan clients are interested in access to this asset, and the bank risks losing them if it doesn’t satisfy this demand.”

This situation also reflects a broader trend in the financial industry: despite continuing skepticism among many traditional financiers, the market and client demand are gradually forcing even the most conservative institutions to adapt to a new reality in which cryptocurrencies play an increasingly significant role.